Australia: PayPal launches bad purchase returns service

The Australian market is the third in the world to introduce the policy, following Canada and France, via which users who opt-in to the service are able to request a refund on the PayPal website and be refunded on shipping costs up to AUD 45 (USD 35.2) across four items, mashable.com reports.

Emma Hunt, Director of Small Business, PayPal Australia said that Australian consumers are more and more into online shopping and that fexibility and convenience in shopping are of utmost importance to them. Still, concerns around potential returns costs and complicated returns processes are preventing over half of Australian shoppers from buying digital, Hunt concluded, the source cites.

It follows a study by the company which reveals that 5 million Australians were receiving clothes they didnt want, with a total purchase price of a whopping AUD 460 million (USD 361) or 13 million items. It also takes the pressure off smaller retailers moving into the digital space, with some shoppers hesitant to buy from stores that did not have a free returns policy.

Nevertheless, customers cant get a refund on shipping of intangible goods such as music and vouchers or items the retailer decides to exclude from the policy. They also need to pay the whole amount from their PayPal account and can only claim up to a total of AUD 45 (USD 35.2) across four returns up until July, 2015. Afterwards, the service will exist with some minor tweaks.